Note 13. Income Taxes
In determining the quarterly provision
for income taxes, the Company uses an estimated annual effective tax rate based on expected annual income, statutory tax
rates, and available tax planning opportunities in the various jurisdictions in which the Company operates. Unusual or infrequently
occurring items are separately recognized in the quarter in which they occur.
Our effective income tax rate for the
twelve weeks ended December 19, 2012 was 26.0%, compared to the effective income tax rate of 32.3% in the same period in the prior
year. The decrease in the tax rate is primarily attributable to dividends received from equity investments, which are taxed at
lower rates than is the income derived from wholly owned businesses.
As of December 19, 2012 and
September 26, 2012, we had approximately $837 and $812, respectively, of unrecognized tax benefits, which are included in
Other long-term liabilities in the Consolidated Balance Sheet.